BEIJING: Japanese rubber futures rose on Friday, as Israel’s strikes on Iran sent oil prices soaring and Asian markets lower.
The Osaka Exchange (OSE) rubber contract for November delivery was up 0.45% at 292.2 yen per kg.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 0.33% to 13,815 yuan per metric ton.
The most active July butadiene rubber contract on the SHFE climbed 0.94% to 11,315 yuan per metric ton.
The price of Thailand’s benchmark export-grade smoked rubber sheet (RSS3) and block rubber was down 0.22% and 0.63% at 76.88 baht and 61.8 baht, respectively.
Japan’s Nikkei average futures dipped 1.3% in early trade.
Oil prices jumped nearly 9% on Friday to near multi-month highs after Israel launched strikes against Iran, sparking Iranian retaliation and raising worries about a disruption in Middle East oil supplies.
Japanese rubber futures extend gains
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Rubber crops usually undergo a season of low production from February to May, before a peak harvesting period that lasts until September.
The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery was at 161.6 U.S. cents per kg, up 1%.
Comments
Comments are closed for this article.